The benchmark Shanghai Composite Index advanced slightly by 0.05 percent or 1.29 points to close the day at 2,755.65.

Guangzhou Port Group saw its shares hit the daily 10 percent cap on price rises to stand at 4.84 yuan (US$0.71) per share, following the outline development plan for the Greater Bay Area announced a day earlier.

The smaller Shenzhen Component Index saw fractional losses to end at around 8,440.87 points, while the ChiNext Index, China’s Nasdaq-style board of growth enterprises, was down by 0.53 percent to finish at 1,406.04 points.

China's central government on Monday announced the outline development plan for the Guangdong-Hong Kong-Macau Greater Bay Area, with the aim to develop the region into "a role model of high-quality development." The move was well received by investors during the morning trading sessions.

Yang Hai, a senior strategy analyst at Kaiyuan Securities, predicted that companies in Zhuhai and Shenzhen may benefit more from the policy incentives and advises investors to keep abreast with the introduction of more detailed policies and supporting measures.

Jing Ulrich, managing director and vice chairman for Asia Pacific at J.P. Morgan Chase, was quoted by the CNBC as saying that many global investors are now coming back into the Chinese market, which has partly helped boost the recent gains for the A-shares.

The Shanghai composite was reported to have jumped more than 10 percent so far in 2019.

Out of concerns including high debt levels, slowing growth and bond defaults, many overseas investors have been underweight on China, but they are now making a comeback because of lower valuations compared to a few years ago, according to Ulrich.

She said global institutional investors are looking at fast-growth industries such as artificial intelligence, new energy vehicles and the Internet, areas which are very “resilient” despite a slowdown in the general economy.